Head-To-Head Analysis: MidWestOne Financial Group (MOFG) and Bank of Hawaii (BOH)
MidWestOne Financial Group (NASDAQ: MOFG) and Bank of Hawaii (NYSE:BOH) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.
Insider & Institutional Ownership
46.4% of MidWestOne Financial Group shares are held by institutional investors. Comparatively, 75.7% of Bank of Hawaii shares are held by institutional investors. 25.3% of MidWestOne Financial Group shares are held by company insiders. Comparatively, 2.2% of Bank of Hawaii shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
MidWestOne Financial Group pays an annual dividend of $0.68 per share and has a dividend yield of 2.1%. Bank of Hawaii pays an annual dividend of $2.08 per share and has a dividend yield of 2.6%. MidWestOne Financial Group pays out 33.5% of its earnings in the form of a dividend. Bank of Hawaii pays out 47.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bank of Hawaii has increased its dividend for 2 consecutive years. Bank of Hawaii is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
MidWestOne Financial Group has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.
This table compares MidWestOne Financial Group and Bank of Hawaii’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MidWestOne Financial Group||17.35%||7.38%||0.79%|
|Bank of Hawaii||26.80%||15.48%||1.11%|
This is a breakdown of recent ratings for MidWestOne Financial Group and Bank of Hawaii, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MidWestOne Financial Group||0||1||2||0||2.67|
|Bank of Hawaii||1||4||1||0||2.00|
MidWestOne Financial Group presently has a consensus target price of $38.67, indicating a potential upside of 21.82%. Bank of Hawaii has a consensus target price of $90.90, indicating a potential upside of 13.44%. Given MidWestOne Financial Group’s stronger consensus rating and higher possible upside, research analysts clearly believe MidWestOne Financial Group is more favorable than Bank of Hawaii.
Valuation & Earnings
This table compares MidWestOne Financial Group and Bank of Hawaii’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MidWestOne Financial Group||$135.76 million||2.86||$20.39 million||$2.03||15.64|
|Bank of Hawaii||$689.21 million||4.93||$184.67 million||$4.34||18.46|
Bank of Hawaii has higher revenue and earnings than MidWestOne Financial Group. MidWestOne Financial Group is trading at a lower price-to-earnings ratio than Bank of Hawaii, indicating that it is currently the more affordable of the two stocks.
Bank of Hawaii beats MidWestOne Financial Group on 11 of the 17 factors compared between the two stocks.
MidWestOne Financial Group Company Profile
MidWestOne Financial Group, Inc. is a bank holding and financial holding company. The Company operates through its bank subsidiaries, MidWestOne Bank, Central Bank and MidWestOne Insurance Services, Inc. that operates through three agencies located in central and east-central Iowa. As of December 31, 2016, the Bank operated a total of 43 banking offices in Iowa, Minnesota, Wisconsin, and Florida. It provides full service retail banking in the communities in which its branch offices are located and also offers trust and investment management services. The Bank offers deposit products, including checking and other demand deposit accounts, negotiable order of withdrawal (NOW) accounts, savings accounts, money market accounts, certificates of deposit, individual retirement accounts and other time deposits. The Bank offers commercial and industrial, agricultural, real estate mortgage and consumer loans.
Bank of Hawaii Company Profile
Bank of Hawaii Corporation is a bank holding company that operates through its subsidiary, Bank of Hawaii (the Bank). The Bank provides a range of financial products and services primarily to customers in Hawaii, Guam and other Pacific Islands. It operates in four segments: Retail Banking, Commercial Banking, Investment Services, and Treasury and Other. The Retail Banking segment offers a range of financial products and services to consumers and small businesses. The Commercial Banking segment offers products, including corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing and deposit products. The Investment Services segment offers private banking and international client banking, trust services, investment management and institutional investment advisory services. The Treasury and Other segment consists of corporate asset and liability management activities, including interest rate risk management and a foreign currency exchange business.
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